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(Alliance News) - Primary Health Properties PLC on Thursday said is has agreed to acquire Nexus Tradeco Holdings Ltd in a cash and share deal totalling GBP33.1 million.
Primary Health Properties said the deal, which is subject to shareholder approval, will "internalise the primary health facilities investor's management function" as Nexus Tradeco Holdings is the holding company of its external property adviser, Nexus Tradeco Ltd.
In total, the deal values Nexus Tradeco at GBP33.1 million - though this is subject to the completion of a net assets adjustment - including GBP16.6 million in cash plus 11.5 million shares at a price of 144.1 pence each.
"The board believes that there are a number of compelling financial and strategic benefits of the acquisition, as the Internalisation is expected to result in immediate and longer-term adjusted EPRA EPS enhancement, with some minor one-off EPRA NAV dilution," said Primary Health Properties.
Chair Steven Owen said: "Exacerbated by the disruption seen this year, demand for new and improved primary care centres to alleviate pressure on hospitals and A&E departments is at an all-time high. We believe that acquiring Nexus will help position[Primary Health Properties] to play a key role in these opportunities, underpinning the next stage of the company's growth and benefitting the long-term future of the business."
Shares in Primary Health Properties were up 1.7% at 141.20 pence in London on Thursday afternoon.
By Anna Farley; annafarley@alliancenews.com
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